Property Market

When you hear about a rising property market, remember it’s not the house rising in value. The house can only depreciate.

It’s the land the house sits on that goes up in value. It’s important to look at the property market from a land perspective. The land around the services and infrastructure most people want to live close to is fixed in supply.

What influences the property market?

The property market is not subject to the same laws of competition. It will sell for the highest prices that the economy can afford to pay for that location value. In other words land will always soak up any of society’s gains.

That’s why here at Markets & Money our property experts keep their fingers on the pulse of Aussie land prices.

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Australian mortgage application form
The Switch to a Buyer’s Market
The housing market is very different from a few months ago. Back then, buyers were getting into frenzied auctions, spending more than what they had budgeted for and properties were going above the reserve. In other words, we could be seeing the switch from a seller’s to a buyer’s market.
US economy illness
Stock Markets Happier on a Hiring Spree by US Businesses
In early February, markets looked to be on the brink of collapse because of concerns over rising interest rates and higher inflation. A month seems to be a long time in markets. In stark contrast to the month before, the market seems to have a happier disposition now.
dollary symbol holding up property market
Property Market Incentives are Drying Up
Easy credit and low interest rates have meant a booming housing market. What do you think a cut on credit and higher interest rates will mean for the housing market? Developers are now offering incentives to buy property. Another sign that the property market is slowing.
air rights
Paved Paradise and Put Up an Apartment Block
‘Air rights’ weren’t a thing in Australia until a few years ago. Even then, it mirrored the US, where air rights were mostly protecting the space around important buildings. Of course, things change. Now air rights mean something more than just views. Instead of paving paradise and putting a parking lot, the new twist is to rip up the parking lot and put in an apartment block.
interest rates could go lower
Get Ready for Even Lower Interest Rates
National Australia Bank has a consensus view that the RBA will start increasing the cash rate around August. But there’s a problem with that line of thinking. Just because rates have been at records lows doesn’t mean they can’t go any lower. For one, there’s the Aussie property market to think about.
real estate mcdonald's property
The McDonald’s Fortune Founded on Real Estate
The McDonald brothers explained that franchisees find land in a prime position, take out a lease, and borrow funds for construction. Who’d have thought the founder’s success in getting started came not from the sale of burgers but from the value in the land on which the burgers were made?
Australian property market
How to Own Almost 200 Properties
It’s not the number of properties that makes you rich; it’s the percentage you own. For example, imagine two investors. One owns 20 properties, the other owns three. Who’s better off? To decide, we need more information.
Construction boom
Australia’s Economic Achilles Heel
Today’s article was originally published on 18 August. It looks at Australia’s weak wage growth, optimistic Reserve Bank, and what could be our greatest economic weakness.
Aussie Property Has Nothing on Hong Kong
Aussie Property Has Nothing on Hong Kong
Think Aussie property is seriously overvalued? Then you’ll think property in Hong Kong is ridiculous! Hong Kong dwelling prices have climbed 11% this year. And that’s coming off continuous growth since 2009.